FRANCHISE·WATCH·DESK

Verified — real FDD extraction

Not found in the SBA Franchise Directory under this name — though SBA loans to its franchisees exist; verify eligibility with your lender

Shrunk 3D

Retail & Products · independent · est. —

Shrunk 3D is a service that 3D-scans people and pets and produces miniature full-color 3D-printed figurines of them as keepsakes. Customers are scanned, often at events or in a studio, and receive a personalized statuette. A franchisee operates the scanning and printing business, capturing scans and managing figurine production.

Shrunk 3D net unit count grew +2100.0% from 20212023 per its FDD Item 20.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Too new to judge

Distress

0
STABLE

22 franchised units over 3 disclosed years is not a track record — systems this early have realized only a fraction of their eventual failures. Judge the disclosures, not a verdict.

Exit rate · latest year

37.5%

vs 1.9% across 15 retail & products systems

Cost to open

$187K–$267K

Item 7 total investment range

SBA loan defaults

Too few resolved

13 loans exist; too few resolved to rate

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Strong
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Weak
Transfer / churn15%

transfers vs. base · Table 3

Fair
Promise-keeping10%

actual vs. projected openings · Table 5

Strong
Transparency15%

Item 19 disclosure + completeness

Strong

Systemwide units

2021–2023

+2100.0%
1202182022222023

Survival record

FDD Item 20 · outlet status by year

In fiscal 2023, 3 of 8 franchised outlets left the system — a 37.5% annualized exit rate, vs 1.9% across 15 retail & products systems. Not every exit is a failure — but this is the measurable floor.

Show the outlet tables
Status (FTC)202120222023
Outlets at start118
Opened1817
Transfers001
Terminations000
Non-renewals000
Reacquired by franchisor010
Ceased — other reasons003
Outlets at end1822
Net change0+7+14

The lender's view

SBA 7(a)/504 loan performance · FY1991–present

Banks have made 13 SBA-backed loans to Shrunk 3D franchisees since 2023. Most are still open, so there is not yet a resolved cohort large enough to rate.

Charge-off rate

1 resolved · too thin to rate

Loss given default

avg. charged-off $ ÷ approved $

Expected loss

default rate × loss severity

Avg. loan · FY2020+

$154,484

what recent franchisees borrowed

Median time to default

approval → charge-off, defaulted loans

Lenders · FY21+ vs FY16–20

distinct banks lending

Charge-off rate by loan approval year (%)

SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO SHRUNK 3D BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

Buying in means a $50K franchise fee (Item 5) and a total investment of $187K–$267K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.

To open (Item 7)

$187K–$267K

all-in investment range

Franchise fee (Item 5)

$50K

upfront, one-time

Royalty (Item 6)

8%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — cross-check against this brand's Item 19 and current-owner validation.

Royalty you'd pay / yr

$80K

8% of sales, before profit

Over a 10-yr term

$800K

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for Shrunk 3D with an independent CPA

Distress signals

news-sourced · bankruptcies, closures, lawsuits

No recent closures, bankruptcies, or major lawsuits found in the news for Shrunk 3D. That's a good sign — but it reflects news coverage, not a guarantee.

Before you sign anythingfree · 30 min · no commission

A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing Shrunk 3D's numbers, including talking you out of a bad deal.

Talk to an independent CPA before you buy →

Shrunk 3D franchise questions, answered from the filings

What percentage of Shrunk 3D franchises closed last year?

In Shrunk 3D's latest FDD Item 20 (fiscal 2023), 3 of 8 franchised outlets left the system — an annualized exit rate of 37.5% — compared with 1.9% across 15 retail & products systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.

How much does a Shrunk 3D franchise cost?

Per Shrunk 3D's 2024 FDD, buying in requires an initial franchise fee of $50K (Item 5) and a total initial investment of $187K–$267K (Item 7).

What royalty does Shrunk 3D charge?

Shrunk 3D charges an ongoing royalty of 8.0% of gross sales, per Item 6 of its 2024 FDD.

Does Shrunk 3D disclose earnings (Item 19)?

Yes — Shrunk 3D makes a financial performance representation in Item 19 of its 2024 FDD. Read it closely: franchisors choose which units and which metrics to include.

Is Shrunk 3D a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk